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How To Say Shareholders Agreement In French

A shareholders` pact generally stipulates that it is binding for the purchasers of the shareholders who signed the agreement or for the holders of new shares issued by the company. In order to enhance the applicability and practical implementation of these provisions, they are often accompanied by provisions requiring the company to require, as a precondition for the issuance of new shares or the listing of a share transfer in the company`s share statements, that the new shareholder or acquirer execute a Joinder in the shareholder contract. A shareholder contract is only a contract under French law. There are no specific formalities that apply to such an agreement. However, it only engages contracting parties in terms of contract law. . All the preferential rights of investors (priority dividends, multiple votes, veto rights, etc.) would then be mentioned in the company`s statutes, which make it public and enforceable vis-à-vis third parties. The shareholders` pact would limit its scope to more confidential information such as business plan or projected internal return. – Questions that require unanimous shareholder decisions are very frequently used in France, especially for private equity transactions. – guarantees such as dilution clauses for certain shareholders.

– Directors, Shareholders and Corporate Bonds The subject of a shareholders` pact in France is generally limited to matters relating to the management and management of the company, as well as the governance of shareholders` rights and obligations vis-à-vis the company and other shareholders: – derogatory powers in favour of investors: multiple voting rights, veto rights, reporting rights in addition to all the rights mentioned below. Today, in France, it is possible to ensure the control of minority shareholders over the company through a shareholders` pact (either by voting provisions or by guarantees). A more effective option is the issuance of gold shares underwritten by investors – Corporate Organization (governance): board powers (some important issues requiring board approval by specific decision), composition of the board of directors (investor appointees, some of the founders, potentially independent directors) – The obligations of the founders (mainly to devote all their time and attention to the company).

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